FTX US gains membership to international derivatives agreements body ISDA

FTX US has obtained a membership to the Futures Industry Association (FIA) and the International Swaps and Derivatives Association, Inc.(ISDA), putting the crypto exchange service on firmer ground when it comes to cleared swaps compliance.

ISDA is an organization with an international membership that draws up agreements for member firms dealing in derivatives.  It sets out collective standards governing over-the-counter derivatives transactions in its Master Agreement, and helps individual parties come to individual agreements for standards related to their OTC derivative transactions, like foreign exchange or interest rates.


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Overall, admission into the organization creates some degree of standardization among global businesses, enabling greater liquidity since it's easier for them to do business with one another when operating from the same set of standards — the ISDA Master Agreement. It cuts out the need to create individual international agreements. FTX will now leverage that network.

FTX CEO Sam Bankman-Fried tweeted the news today saying the company is looking forward to working alongside ISDA and its CEO Scott O'Malia as the firm continues "to build up crypto derivatives markets in the United States and globally."

This announcement comes a day after Bankman-Fried sat before the U.S. House Financial Services Committee as a witness in its latest crypto-focused hearing. During the session, Bankman-Fried supported a harmonization of regulatory standards for crypto trading platforms. 

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Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to akeely@theblock.co or follow her on Twitter for updates @AislinnKeely.